(17-07-2012, 12:02 PM)Gregg Wrote:(17-07-2012, 11:52 AM)Some-one Wrote: ok. I am not disagreeing with you on the high yield, low debt part. It's fundamentals are quite strong but I realised that the dividend payout ratio is more than 100%. This would probably mean that the growth would not be great as most earnings have been given away as dividend. Not suitable for those who are looking for growth.
Yes, it is >100% payout base on EPS but only 70% payout base on FCF. In past 5 years, the Free Cash Flow generated is actually sustainable for 3 or 4 cents annual dividend.
(vested)
If you prefer Growth, once you receive the 10% Dividend Yield, use it to buy more NeraTel stocks and Hey, Presto! You get a 10% Growth stock but No Dividend!
The best thing is, you get a choice of whether you want Yield or Growth or a combo of both...
BTW, FY12 will likely see some EPS growth, coming from the full year contribution of MENA rights. Further, after 3-yrs of non-compete clause for Nera products, who knows, they may start to expand this biz world-wide, assuming they can still get Nera products.
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
------------ 知己知彼 ,百战不殆 ;不知彼 ,不知己 ,每战必殆 ------------
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